Trademarks and Venture Capital Valuation

50 Pages Posted: 22 May 2012 Last revised: 22 Feb 2014

See all articles by Jorn H. Block

Jorn H. Block

University of Trier - Faculty of Management; Erasmus University Rotterdam (EUR) - Institute of Management (ERIM)

Geertjan de Vries

Erasmus University Rotterdam (EUR) - Erasmus School of Economics (ESE); Tinbergen Institute

Philipp G. Sandner

Frankfurt School of Finance & Management

Jan Hendrik Schumann

University of Passau

Date Written: May 22, 2012

Abstract

This study investigates the role of trademarks in the start-up valuations of venture capitalists (VCs). Our results show that the number and breadth of trademark applications have inverted U-shaped relationships with the financial valuations of start-ups by VCs. The findings also indicate that in later funding rounds, the value of trademark applications decreases when the start-up progresses into more advanced development stages. Start-ups should consider these findings when seeking funding from VCs and should stress their market and growth orientations and their willingness to protect their marketing investments by highlighting their trademark activities.

Keywords: venture capital, trademarks, entrepreneurial marketing, patents, intellectual property

JEL Classification: O34, G24, L26

Suggested Citation

Block, Jorn Hendrich and de Vries, Geertjan and Sandner, Philipp and Schumann, Jan Hendrik, Trademarks and Venture Capital Valuation (May 22, 2012). Journal of Business Venturing, Forthcoming. Available at SSRN: https://ssrn.com/abstract=2064508 or http://dx.doi.org/10.2139/ssrn.2064508

Jorn Hendrich Block (Contact Author)

University of Trier - Faculty of Management ( email )

D-54296
Germany

Erasmus University Rotterdam (EUR) - Institute of Management (ERIM) ( email )

Burgemeester Oudlaan 50
3000 DR Rotterdam, Zuid-Holland 3062PA
Netherlands

Geertjan De Vries

Erasmus University Rotterdam (EUR) - Erasmus School of Economics (ESE) ( email )

P.O. Box 1738
3000 DR Rotterdam, NL 3062 PA
Netherlands

Tinbergen Institute ( email )

P.O. Box 1738
3000 DR Rotterdam
Netherlands

Philipp Sandner

Frankfurt School of Finance & Management ( email )

Adickesallee 32-34
Frankfurt am Main, 60322
Germany

HOME PAGE: http://www.philipp-sandner.de

Jan Hendrik Schumann

University of Passau ( email )

Wirtschaftswissenschaftliche Fakultaet
Passau, D-94030
Germany

HOME PAGE: http://www.wiwi.uni-passau.de/marketing-innovation.html

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